Recent research report finds payments fraud has doubled (!) +100% over the last two years worldwide, fueled by Cybercrime that makes stolen genuine personal data cheap and easy to obtain. AU10TIX warns that the use of genuine stolen data compromises the effectiveness of data verification and screening practices, making 2ndgeneration ID document forgery and counterfeiting forensics first line of effective defense (together with biometric ID-to-Selfie face matching).
Latest study released by ThreatMetrix finds that 83 million fraudulent payments account openings were attempted between 2015 and 2017, with mobile now overtaking desktop-based transactions. Online account takeover attacks have increased by 170%, with an attack now taking place every 10 seconds. The study found that cyber criminals have switched from stolen credit cards to account opening and takeovers using cheap and easy to obtain identity data stolen en-mass via data breaches and the dark web (Source: http://www.fstech.co.uk/fst/ThreatMetrix_Cyber_Crime_2017_Study.php). Cybercrime is thus rendering the current practice of data verification and screening (CIP in KYC) almost useless. Genuine identity data of innocent consumers obviously passes typical KYC-mandated checks. AU10TIX warns that relying on data checking alone without looking at the source of that data, namely the ID document picture submitted by customers, is a certain receipt for fraud crisis.
AU10TIX recommends forensic-level ID authentication technology which combines forgery, counterfeiting and risk flag detection. What is known as 2nd generation ID Authentication and Onboarding automation is already powering global major players across the entire range of financial services. 2nd generation technology replaces 1st generation solutions that rely primarily on OCR-ed data and are image quality sensitive. 2nd generation technology, such as BOS, enables a fully automated process that includes forensic-level forgery, counterfeiting and collateral risk detection, up to +300% higher conversion rates of borderline quality images, and offers actionable rapid-response exception reporting ג€“ all at 8 seconds or less typical processing speed.
Thanks to these features, 2nd generation technology impacts competitiveness and operating efficiency, beyond enabling robuster fraud protection and KYC compliance.
“Latest technology is offering a compelling combination”, says Ron Atzmon, Managing Director of AU10TIX: ג€Full automation and higher conversion rates have direct impact on customer acquisition and operating efficiency at the same time they do on fraud prevention and regulatory compliance. As forerunners of 2nd generation technology which already powers some of the leading players worldwide we are witnessing the business value of 2nd generation automation. We call upon all those seeking to implement or replace customer onboarding and ID authentication technology to educate themselves about the quantum leap that 2nd generation offers”.
“We call upon regulators to account for what new technology enables”, says Ofer Friedman, VP Marketing of AU10TIX: ג€Much of today’s regulations were conceived when technology was focusing on document reading while the detection of forgeries and counterfeiting had no alternative by human expertise. Nowadays we’re not surprised to see machines authentication IDs and biometrics in airports, but in online and mobile financial services 2nd generation technology is yet to become the standard and be addressed by regulators. Today technology can detect fraud, counterfeiting and risk at levels of accuracy and systematics that is far superior to humans. It is already changing the game for a growing number of businesses. But now it’s time for regulators to pick the glove”.
About AU10TIX
AU10TIX Limited, a fully owned subsidiary of ICTS International N.V, deals with the authentication and digitization of identifying documents including Passports, identity cards, driving licenses and other complementary identifying documents. The company specializes in implementing hardware & software based applications used for scanning, identifying, content retrieval, authentication and validation of identifying documents. AU10TIX is a pioneer of all-channel (front-end and online) ID authentication and processing solutions. The company’s products drastically reduce identifying document-based fraud, reducing the costs associated with client processing and enabling effective regulatory compliance, while making the sales and support operations speedier and considerably more efficient.
For more information, visit www.au10tix.com
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the Company’s business strategy and future plans of operations.ֲ Forward-looking statements involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this press release.ֲ These and other important factors, including those mentioned in various Securities and Exchange Commission filings made periodically by the Company, may cause the Company’s actual results and performance to differ materially from the future results and performance expressed in or implied by such forward-looking statements.ֲ The forward-looking statements contained in this press release speak only as of the date hereof and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in the Company’s expectations or future events.